Unfortunately, in spite of the fact that BellSouth will attempt

to show otherwise, there's little evidence that local competition

exists in Georgia:

·BellSouth still has 98 percent market share in its service

territory. It's still a monopoly, and competitors haven't been able

to break into the business in any meaningful way which

means small businesses and all consumers still have no real choice

in local phone service.

·BellSouth still doesn't have the capacity to switch large

numbers of customers over to competitors. As long as consumers and

small businesses have concerns about disruptions in their service if

they switch - they'll avoid that risk and stick with the monopoly. This

psychological and physical barrier must be overcome if

competition is to succeed - it has to be easy and as risk-free to switch local

companies as it is to switch long distance companies.

·And BellSouth has continued to hinder competitor's access

to the switching facilities necessary for new facilities-based

competition as required by law.

For the most part, state officials nationwide are taking their

responsibilities extremely seriously in determining whether the

local phone monopolies are genuine in opening local markets to

competition. They have set tough but reasonable standards to prod the

Baby Bells to take concrete steps to promote competition. Recently

the Texas, Florida, and California commissions have all

determined that the local phone monopolies have fallen far short of

what's required to open their markets to competitors. Last year the

Georgia PSC ruled twice that BellSouth had failed to meet these standards.

Now BellSouth has decided to go to bat in front of Georgia

regulators once more, hoping that the third time will be the charm.

How will the Georgia Public Service Commission react to

BellSouth's newly-recycled claims that there's real competition for local

phone service in Georgia in spite of its 98 percent market share?

The stakes are high for the state's small businesses and

consumers. If properly implemented, phone competition will bring

better prices, improved service, more jobs, an increase in

innovation, and big investments in Georgia's telecom infrastructure. That's

been the experience in every industry where competition has been

introduced. It will happen with phone service as well.

The Small Business Survival Committee urges the Georgia

PSC to require real progress and uphold its rigorous standard in

reviewing whether true competition can flourish in the current

environment before it gives any special consideration to

BellSouth. Wearing down the Commission through another round

of BellSouth applications, does not, in itself, make competition a

reality.

Our 50,000+ members are instinctive in their belief of the

benefits of competition. It will bring big dividends to businesses

and consumers alike. Small businesses compete in the market every

day. It's time to ensure that monopolies like BellSouth play by

the rules and face the same type of real competition we all do. All

of us will benefit if they do.

Karen Kerrigan

President, Small Business Survival Committee

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